TrustX, P&G and the ANA move to reduce so-called ‘ad-tech tax’

03/07/19

TrustX is eliminating its 12.5 percent supply-side fee from within its platform following a three-month trial with Meredith, NBCUniversal, CBS Interactive and Magna Global, a move it hopes will have broader implications for the digital advertising ecosystem.

The trade body, which represents 35 publishers, including ESPN, Hearst, News Corp. and Condé Nast, argues that for every digital ad dollar spent, only 40 percent goes toward working media. The rest, it says, finds its way into the pockets of agencies, trading desks, ad exchanges, data, measurement and anti-fraud companies, as well as demand side platforms, which are used by marketers to make programmatic ad buys.

“The supply and bidding economics have gotten so complicated and opaque that nobody knew what was happening behind the scenes,” says Joanna O’Connell, VP and principal analyst at Forrester. “The difference now is marketers are starting to peel back the onion to gain a better understanding of who they’re paying and who’s actually worth paying. It’s a huge area of focus and some are moving heaven and earth to uncover where all the pennies are going.”